David Baines: Richmond community centre employee charged with embezzling funds

David Baines.

Photograph by: Vancouver Sun files
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A former City of Richmond employee who allegedly embezzled a “substantial sum” from the South Arm Community Association over a period of five years has been charged with one count of fraud and one court of theft.

Robert Michael Minoru Yoneda held a senior position with the association. He was initially suspended, then fired in September 2011 after an internal investigation found irregularities in the association’s accounting.

The association runs the South Arm Community Centre in a joint partnership with the city. Its annual operating budget is more than $1 million, according to city spokesman Ted Townsend.

When the matter was first reported in January 2012, city officials alleged that Yoneda had embezzled about $200,000. Whether he has been charged with embezzling that much is not clear. The charges refer only to theft and fraud “over $5,000.” Richmond RCMP spokesman Sherrdean Turley said the alleged amount is “substantial.”

RCMP completed their investigation in a relatively short period of time compared to a similar case of embezzlement involving Debbie Judd, former chairman and treasurer the Richmond Youth Soccer Association.

In that case, Judd embezzled just over $200,000 from 1998 to 2003. The soccer association reported the matter to police in early 2004, but Richmond RCMP did not lay charges until June 2009 and it wasn’t until January 2012 that she was sentenced to two years in jail.

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Getting cooperation from RCMP “E” division officials can be problematic, especially if you aren’t riding the same horse as they are.

On Feb. 6, I reported that RCMP was restructuring its economic crime functions. Among other things, the hapless RCMP Integrated Market Enforcement Teams was being folded or merged into the almost-as-hapless RCMP Commercial Crime Section, to form something called “Financial Integrity.”

The Vancouver IMET team has already abandoned its spacious offices on West Georgia Street and, along with members of the Commercial Crime Section, has relocated to the new RCMP mega-complex in Surrey, known as Green Timbers.

When I asked communications officer Sgt. Duncan Pound whether I could talk to somebody about this reorganization, he said RCMP officials are planning to provide some information “in the future” and he would keep my request “in mind.”

I viewed this request as vague and unhelpful, but I wasn’t surprised. Pound knows I’m not generally impressed by the investigative skills or diligence of RCMP white-collar crime investigators. I wasn’t expecting much cooperation.

So I waited. Ten weeks lapsed and I still hadn’t heard anything. So last week, I asked Pound to clarify when RCMP expect to make an announcement and whether he planned to alert me when it did. This was a simple question, requiring a simple response. Or so I thought.

“Thank you for your additional query to clarify the process,” he said in an email response.

“The announcement will most likely proceed as a release to all media outlets at the same time with the opportunity for interviews with the Officer in Charge of Federal Policing for British Columbia and/or his delegates. No timeline for the announcement has been set, so I will not speculate as to the timing.”

He continued: “On the day of the announcement your request for an interview on the topic would be considered along with any other similar requests from other media outlets.”

(Pound gives the impression that reporters will be lining up for interview opportunities, but I can’t imagine that any other reporter or columnist in B.C. has inquired about this matter. I tried to ask him about this, but he did not return my call.)

He continued: “If the request is approved, the RCMP Federal Media Relations Officer will contact you to confirm the date, time and location. If you wish to be certain not to be overlooked, please submit your request for an interview again following the announcement so that we may confirm for you that it is on the list of requests generated by the release. Please follow the RCMP website here in B.C. at www.bc.rcmp.ca for media releases of possible interest to you.”

While his response appears polite and responsive, it is actually highly bureaucratic and quite unhelpful. Obstruction disguised as cooperation.

•••

A former Parksville stockbroker has agreed to a four-year licence suspension after admitting he entered into undisclosed but highly remunerative financial dealings with two elderly clients.

In a settlement agreement with the Investment Industry Regulatory Organization of Canada, Daniel Edward Smith also agreed to pay a $50,000 fine and $5,000 in costs.

According to the settlement agreement, Smith was working at BMO Nesbitt Burns in Parksville from July 2003 to October 2009 when he entered into personal financial dealings with an elderly couple identified only as Mr. and Mrs. S. (They were born in 1920 and 1918, respectively.)

In August 2000, Mrs. S. gave Smith’s wife, who worked as an unregistered office assistant at the brokerage firm, power of attorney over her affairs. Smith did not disclose that fact to Nesbitt.

In early 2003, Mr. S was diagnosed with cancer. Smith’s wife took them to the medical appointment and in general, treated them “like their own grandparents.”

In July 2003, the couple sold their waterfront property in Nanoose Bay to Smith and his wife for $304,500, which was the assessed value. There was no appraisal. The following year, the property was assessed at $360,100. Once again, Smith did not disclose this transaction to his employer.

In December 2003, Mr. S passed away at age 83. Smith’s wife provide more personal assistance to Mrs. S, such as taking her on errands, appointments and outings.

In early 2004, Mrs. S gave each of Smith’s two children $30,000 for their university education. Again, Smith didn’t tell Nesbitt about these gifts.

At about the same, Mrs. S wanted to change her will, which bequeathed her entire estate to charity. At her request, Smith contacted a lawyer and drove her to the lawyer’s office, where she revised her will to make Smith and his family 75-per-cent beneficiaries. Smith did not disclose this to his employer.

It wasn’t until October 2008, when Mrs. S. passed away at age 90, that Nesbitt compliance officers learned that Smith and his wife had been named as beneficiaries of her will. And it wasn’t until October 2009, under questioning from compliance officers, that Smith disclosed his other dealings with the couple.

On Feb. 1, 2010, Nesbitt terminated his employment for cause.

Smith could well afford to pay the $55,000 fine and costs. The settlement notes that the gross value of Mrs. S’s estate was $1,223,086, of which 75 per cent (about $917,000) was distributed to Smith and his wife in 2010 and 2011.

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